NEPSE Lost 11.31 Points Last Week; Weekly Summary with Technical Analysis, Sector Comparison, Major Highlights

Sun, May 29, 2022 11:04 AM on Stock Market, Weekly Analysis, Latest,

Part 1: Rundown and Technical Analysis

The market operated for the 5 trading days last week. The market is open from Monday to Friday and closed on Saturdays and Sundays every week.

The NEPSE index closed at 2223.78 last week after a loss of 11.31 points (0.51%). The index had closed at 2,235.09 last week with a loss of 4.91% from the week before that.

This week, the index went as high as 2,250.37 and as low as 2,190.67, hence witnessing volatility of 59.7 points. The index had seen a volatility of 118.97 points in the previous week.

Analysis of Trend

Trend analysis is a technical analysis method that helps to predict future movement based on the current ongoing trend data. Looking at the daily charts, the trend of the NEPSE index is still in a downtrend.


Candlestick Charting and Volume

This week's market movement has formed a Doji candle on the weekly candlestick chart. The Doji candlestick pattern is a formation that occurs when a market’s open price and close price are almost exactly the same. Last week's candle was a long bearish candle.

The highest intraday loss was 34.21 points on Monday with a turnover of Rs 1.37 Arba.

Momentum Indicators

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or index. Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.

The RSI reading on the daily timeframe is 37.41. Meanwhile, the RSI reading on the weekly chart is 35.71. No diversion has been seen in the RSI in relation to the index, thus invalidating any attempt toward the prediction of a reversal. Furthermore, the RSI readings in the daily and weekly charts also say very little other than the obvious fact that the sentiment has been pessimistic in the last few weeks.

On the other side of things, the MACD line is still negative, i.e. below zero in the daily timeframe, with the MACD reading at -53.40. The MACD line is below the signal line.

Price Action

The index gained for two trading days on Tuesday and Wednesday. However, the Indexed followed the trend and continuously fall on other trading days. The index has seen low volatility this week.

It does look like the index has bounced back from the 0.786 Fibonacci level drawn between the two most-recent significant pivot extremes. Although some technical analysts put too much emphasis on these retracement zones, the analyst at hand prefers to adhere to this quote:

"Anticipating retracement levels can be somewhat hazardous, and the trade-off between the amount of retracement desired and what may actually occur is usually unanticipated. Thus, a rough estimate from previous retracements, support and resistance zones, and the location of the longer trend line is probably the best information for an estimate rather than the mechanical percentage numbers derived from various formulas."

2,150 to 2,120 zone may act as the nearest support.

Part 2: Insight into Important Data

More than 1.61 crores unit shares worth Rs. 5.69 Arba have been traded through 1.12 lakhs transactions this week. The current market capitalization of NEPSE stands at Rs. 3,165,202.42 million.

NEPSE index and Sub-indices performance: (Decline is based on previous week's close)

The NEPSE index declined by 0.51% this week. Only "Banking", "Microfinance" and "Mutual Fund" gained this week.

Stocks with the highest Monthly Beta

The top 3 companies with the highest beta are Universal Power Company Limited (UPCL), National Hydro Power Company Limited (NHPC), Dibyashwari Hydropower Company Limited (DHPL) with 3.047, 2.786, and 2.741 respectively.

Top Ten Gainers of the week:

Narayani Development Bank Limited (NABBC) is the top gainer this week. NABBC closed at Rs. 397 with Rs. 52 (15.07%) increment.

Top Ten Losers of the week:

Corporate Development Bank Limited (CORBL) price has decreased by 17.20% and its LTP stands at Rs. 385.

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below


Top Stocks by Turnover, Volume, and Number of Transaction:

Upper Tamakoshi Hydropower Limited (UPPER) is the top traded company of the week. A total of Rs. 21.22 crores worth of UPPER shares were traded this week.

Top Buyers Brokers of the Week:

Naasa Securities Co.Limited (Broker No- 58) was the top buyer broker this week and it has bought stocks worth Rs. 40 crores.

Top 10 Bought Companies:

Top Seller Brokers of the Week:

Naasa Securities Co. Ltd (Broker No- 58) was the top seller broker for this week. The brokerage firm has sold stocks worth Rs. 36.8 crores.

Top 10 Sold Companies:

All the analysis is done with the SS Pro Software. To know more about the software, click on the link below.

SS Pro